Key Takeaways
- • Galaxy Digital reported a Q2 2026 net loss of $85 million with diluted adjusted EPS of $(0.09), primarily driven by depreciation of digital asset prices during the quarter, triggering a 7% stock decline.
- • The company maintains a strong balance sheet with $2.7 billion in total equity and $2.5 billion in cash and stablecoin holdings as of June 30, 2026, despite quarterly losses.
- • Galaxy substantially expanded its data center footprint post-quarter-end by acquiring three new Texas sites (Merlin, Caspian, and Selene) that will support a total power pipeline exceeding 5.7 GW, positioning the firm for AI infrastructure growth.
- • The company successfully completed Phase I delivery of its Helios data center campus in West Texas, delivering 200 MW of gross power (133 MW critical IT load) to CoreWeave under a 15-year lease agreement, with rent commencing in Q2 2026.
- • Galaxy achieved Q2 2026 adjusted gross profit of $43 million and adjusted EBITDA of $(77) million, reflecting margin pressure from operational expansion despite revenue-generating data center capacity coming online.
Summary
Galaxy Digital (Nasdaq: GLXY) reported second-quarter 2026 financial results on August 5, 2026, posting a net loss of $85 million with diluted adjusted earnings per share of $(0.09). The loss was primarily attributable to depreciation of digital asset prices during the quarter, a key driver of the company's bottom-line performance. The market reacted negatively to the results, with Galaxy's stock price declining approximately 7% following the announcement. Despite the quarterly loss, the company demonstrated operational progress in its core data center expansion strategy.
Galaxy's balance sheet remains resilient, with total equity of $2.7 billion and combined cash and stablecoin holdings of $2.5 billion as of June 30, 2026. On an adjusted basis, the company generated gross profit of $43 million in Q2 2026, though adjusted EBITDA came in negative at $(77) million, reflecting the capital-intensive nature of the company's data center development phase and ongoing cryptocurrency market volatility.
The most significant development came post-quarter-end when Galaxy substantially expanded its artificial intelligence data center footprint through three strategic Texas acquisitions. The company secured 500 acres in the McGregor Industrial Park for its Merlin campus, with an initial agreement supporting 74 MW of capacity and potential expansion to 500 MW. Galaxy also acquired two additional development sites—Caspian and Selene—with potential power capacities of approximately 700 MW and 900 MW respectively, subject to ERCOT interconnection approval. These acquisitions bring Galaxy's total power pipeline to over 5.7 GW, positioning the firm as a material player in the AI infrastructure buildout.
During the second quarter, Galaxy completed delivery of Phase I at its Helios data center campus in West Texas, achieving 200 MW of gross power output with 133 MW of critical IT load delivered to CoreWeave under a 15-year lease agreement. Rent commencement under the Phase I lease commenced during Q2 2026 as capacity was delivered, providing recurring revenue streams that will offset the company's capital expenditure cycle. The successful execution of Helios Phase I on schedule and the subsequent acquisition of three additional data center sites signal Galaxy's operational capability to scale infrastructure and capitalize on institutional demand for AI computing capacity, despite near-term cryptocurrency market headwinds reflected in Q2's asset depreciation charges.
Galaxy's balance sheet remains resilient, with total equity of $2.7 billion and combined cash and stablecoin holdings of $2.5 billion as of June 30, 2026. On an adjusted basis, the company generated gross profit of $43 million in Q2 2026, though adjusted EBITDA came in negative at $(77) million, reflecting the capital-intensive nature of the company's data center development phase and ongoing cryptocurrency market volatility.
The most significant development came post-quarter-end when Galaxy substantially expanded its artificial intelligence data center footprint through three strategic Texas acquisitions. The company secured 500 acres in the McGregor Industrial Park for its Merlin campus, with an initial agreement supporting 74 MW of capacity and potential expansion to 500 MW. Galaxy also acquired two additional development sites—Caspian and Selene—with potential power capacities of approximately 700 MW and 900 MW respectively, subject to ERCOT interconnection approval. These acquisitions bring Galaxy's total power pipeline to over 5.7 GW, positioning the firm as a material player in the AI infrastructure buildout.
During the second quarter, Galaxy completed delivery of Phase I at its Helios data center campus in West Texas, achieving 200 MW of gross power output with 133 MW of critical IT load delivered to CoreWeave under a 15-year lease agreement. Rent commencement under the Phase I lease commenced during Q2 2026 as capacity was delivered, providing recurring revenue streams that will offset the company's capital expenditure cycle. The successful execution of Helios Phase I on schedule and the subsequent acquisition of three additional data center sites signal Galaxy's operational capability to scale infrastructure and capitalize on institutional demand for AI computing capacity, despite near-term cryptocurrency market headwinds reflected in Q2's asset depreciation charges.
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